BlackRock Launches First European Crypto ETP, White House Narrows Tariff Strategy, and Fidelity Launches Blockchain Treasury Fund

Takeaways

• BlackRock has launched its first crypto-backed ETP in Europe, marking a major global expansion: The new product, supported by cold storage bitcoin, builds on the success of its US spot bitcoin ETF.
• The White House's move to narrow its tariff strategy has alleviated recession fears and helped lift bitcoin prices: Investors are encouraged by reduced policy uncertainty, although some macro risks continue to persist.
• Fidelity has filed to launch a blockchain-based US Treasury fund using Ethereum, targeting a May 30 launch: This step marks another effort by a traditional financial heavyweight to digitize government bonds.
• Kentucky has enacted a law to secure self-custody rights for bitcoin and ethereum holders: This decisive action, passed unanimously, also states that mining and staking rewards cannot be classed as securities.
• Custodia Bank and Vantage Bank have teamed up to launch Avit, the first bank-issued stablecoin on Ethereum in the US: This partnership paves the way for further integration of traditional banking into digital assets.

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BlackRock Expands Global Footprint With New Bitcoin ETP in Europe

BlackRock has taken its crypto offerings global by launching its first bitcoin exchange-traded product outside North America. The firm’s iShares Bitcoin ETP will debut on Tuesday, trading on Euronext Paris and Xetra under the ticker “IB1T” and on Euronext Amsterdam as “BTCN.” The product is backed by bitcoin securely held in cold storage by Coinbase Custody International Ltd.

The launch comes after the success of BlackRock’s US spot bitcoin ETF, which has amassed more than $50.69 billion in net assets since its inception. US spot bitcoin ETFs have also been enjoying a sustained period of positive sentiment recently as institutional demand for digital asset exposure continues to surge.

This expansion into European markets broadens BlackRock’s global reach, as the firm aims to cater to the growing demand for secure crypto investment vehicles. As one of the first institutional investors in the US to offer products tracking the price of BTC in the US, BlackRock continues to make clear its commitment to furthering investment in the digital asset sector.

White House Announces More Tariffs, Bitcoin Pushes Higher Anyways

In his latest bid to increase domestic manufacturing, President Donald Trump announced Wednesday that 25% tariffs on foreign automobiles will go into effect April 2. But the announcement did little to change the recent rally in crypto prices, with bitcoin briefly dropping Wednesday before pushing back toward $87,000.

When reports Sunday said that sweeping, sector-specific tariffs will be scaled back in favor of "reciprocal tariffs" on major trading partners, bitcoin rebounded. The adjustment in trade policy is part of a broader effort to mitigate recession fears, as the administration aims to focus tariffs on only about 15% of countries with persistent trade imbalances, according to the US Treasury Secretary.

The shift follows a series of more favorable economic signals, including stable interest rate projections from the Federal Reserve and cooling consumer price inflation numbers. Overall crypto market capitalization increased slightly, with bitcoin showing resilience despite previous volatile swings. Some analysts have noted that while tariffs generally do not impact crypto prices directly, reduced policy uncertainty can lead investors to take on more risk, thereby improving market sentiment.

Fidelity Enters Tokenization Arena with New Onchain Treasury Fund

Fidelity Investments is expanding into the world of asset tokenization by filing paperwork to register a blockchain-based version of its US dollar money market fund. The new "OnChain" share class of the Fidelity Treasury Digital Fund will operate on the Ethereum network, with potential plans to expand to other blockchains. If approved by the SEC, the product is expected to launch on May 30, marking Fidelity’s entry into the rapidly growing tokenized US Treasuries market.

This initiative comes as global financial institutions increasingly digitize traditional instruments like government bonds and credit assets to gain operational efficiencies and enable more efficient settlement. With $5.8 trillion in assets under management, Fidelity is the latest major player to join this race. The move also complements its strong presence in the crypto ETF space, where its bitcoin and ether funds (FBTC and FETH) hold significant market positions.

Kentucky Enacts Landmark Law Protecting Crypto Self-Custody Rights

Kentucky has taken a pioneering step in cryptocurrency regulation by signing House Bill 701, which guarantees individuals the right to self-custody their bitcoin and ethereum without government interference. Signed by Governor Andy Beshear after unanimous votes in both chambers, the law ensures that residents who control their own private keys will face no discriminatory regulations from local authorities.

Importantly, the statute also clarifies that mining and staking rewards will not be classified as securities, while blockchain node operation and staking activities remain exempt from state money transmitter regulations. The regulatory framework not only secures the rights of crypto holders but also aims to prevent local governments from enacting measures that could impede crypto mining. As more states explore similar initiatives, Kentucky’s new laws are setting a valuable precedent for other states to potentially follow.

Custodia and Vantage Bank Pioneer America’s First Bank-Issued Stablecoin

Custodia Bank and Vantage Bank have launched what they claim to be “America’s first ever bank-issued stablecoin” named Avit. Using the Ethereum network, the initiative tokenizes USD demand deposits via ERC-20, enabling issuance, transfer, and redemption of Avit. According to Custodia, this development activates a new US dollar payment rail within the banking system and demonstrates that regulated banks can successfully harness permissionless blockchain.

Custodia CEO Caitlin Long emphasized that this stablecoin represents a “real dollar” because it is backed by bank deposits. Vantage Bank CEO Jeff Sinnott described the launch as a pivotal moment that could significantly impact payment infrastructure. Industry observers were quick to highlight the choice of Ethereum as the platform, noting its support for stablecoin infrastructure.

-Team Gemini